"A survey of 1,000 SME decision makers found that a third were unable to correctly define cash flow, even though the majority said they had faced cash flow problems within their business. The findings come at a time when the Autumn Budget has set out a cautious economic outlook for UK companies, adding further pressure to the already challenging environment in which many SMEs are operating."
"The study revealed that 82% of SMEs have encountered cash flow difficulties, with late customer payments (36%) and seasonal shifts in sales (35%) the most common triggers. Broader economic uncertainty was also a factor, with more than a quarter (27%) citing unexpected changes in trading conditions as a cause of disruption. Small and medium-sized firms were the most likely to report difficulties (91% and 90% respectively), followed by micro businesses (84%)."
"On average, SMEs said they experienced cash flow issues 7.4 times a year, with medium-sized firms almost reaching ten separate instances annually. Yet more than half of SMEs (55%) still rely on short-term fixes - most commonly cutting costs, taking out loans or borrowing from friends and family - while only a minority turn to longer-term options such as invoice finance (11%) or outsourced credit control (5%)."
A survey of 1,000 SME decision makers showed a third could not correctly define cash flow despite most reporting cash flow problems. Economic caution in the Autumn Budget adds pressure to an already challenging environment for UK companies. Eighty-two percent of SMEs reported cash flow difficulties, with late customer payments (36%) and seasonal sales shifts (35%) the most common triggers and 27% citing unexpected trading changes. Small and medium firms reported difficulties most often (91% and 90%), micro businesses 84%, and sole traders 68%. SMEs experienced issues on average 7.4 times yearly and 55% relied on short-term fixes while few used invoice finance (11%) or outsourced credit control (5%). The gap between experience and understanding highlights the need for financial support, guidance, and tools to help businesses navigate pressure.
Read at London Business News | Londonlovesbusiness.com
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